f you regularly read any of the industry trade publications, you'll see advertisements for various ISO programs. Yet many companies don't have enough space in their ads to tell the entire story. So how do you, a merchant level salesperson (MLS) looking for an ISO partner, get the full story? Ask the right questions.

Advertising is the activity of attracting public attention to a product or business. Because ad space or air time is limited, companies need to spark interest quickly and creatively. Nothing is wrong with that. But you, their potential customer, need to ask probing questions to better clarify what is offered. This will help you make the right decision about a program, especially when it pertains to pricing. Here are a few questions to ask:

What else is there?

If you see an ad touting a low transaction fee and revenue sharing above interchange and assessment, stop to think: How much is the revenue share and what are the interchange and assessment costs? When you ask, "What else is there?" or read the pricing addendum, you might find the company will also charge you several basis points under the heading of BIN [bank identification number] sponsorship or risk assessment.

Here's an example: BIN sponsorship is 0.0004; risk assessment is 0.04%. This negates the low transaction fee that caught your attention in the first place and lowers your margin or profit. If you don't know what the terms "interchange" and "assessment cost" mean, ask. The company should be more than willing to explain.

What is the transaction fee?

Find out. Is the transaction fee $0.07 or $0.08? Is it $0.11 or $0.12 or higher? What is the revenue split? Make sure you understand. Do not walk away from the conversation until you have an answer.

Do surcharges and mid-qualified and nonqualified transactions exist? How are they priced?

Some programs follow the transaction fee for all charge types, while others pad the mid-qualified and nonqualified surcharges. To explain it in simpler terms, a company will give you a base number above which you can charge the merchant for "mids" and "nons." This will effectively lock in a set profit. Other programs strictly follow the revenue share model and give full revenue share above your split.

When revenue share splits are offered, how and when are expenses charged and applied?

Let's say your statement fee cost is $5 and you have a 50/50 revenue split. You need to know exactly what is being split 50/50 to determine your revenue.

You charge the merchant a statement fee of $10. Is your revenue $2.50 ($10 - $5 = $5; 50% = $2.50) or $0 ($10 x 50% = $5; your cost = $5, $0 revenue)? Ask this question upfront, or better yet, ask for a sample residual report. Information in the report may help clarify the issue.

Will you provide a reference?

Always ask a prospective partner for a reference or two. References are usually MLSs who have been with the company for at least two years. Call them. See what they have to say. If they are happy with the relationship, then there's a good chance you will be, too.

To summarize, an advertiser's objective is to get you to call. Your objective is to find the right partner and a program that maximizes your revenue. If you do call, make sure you:

• Ask the right questions.
• Read the pricing addendums.
• Find a competent and honest provider.
• Ask for a reference.

Remember, each program doesn't necessarily work for everyone. Spend the appropriate time finding the program that best works for you.

Tom Della Badia is Vice President of Sales at IRN Payment Systems. IRN has provided electronic payment processing solutions through its PartnerAmerica program to businesses nationwide for over 18 years. Services include credit card and check/debit processing for merchants, retailers, manufacturers, distributors and wholesalers of all sizes, from individual facilities to multiple and chain operations. For more information, call Della Badia at 800-366-1388, ext. 210 or visit www.partner-america.com .